Term Life Insurance

Term life insurance provides death benefit protection for a specified period of time. Proceeds are payable to a beneficiary at the death of the insured, provided the death occurs within a specified period such as 5 or 10 years. Term life insurance is typically the least expensive type of life insurance as it covers a shorter period of time (i.e. from 1 to as many as 30 years) and does not include any cash value at the end of the term.

Term life insurance guarantees rates and coverage for an initial period. To remain covered beyond the initial contract you may need to sign a new application and pay an increase in premium. Since term policy premiums are based on the likelihood of your death, the cost of insurance increases as you get older. Term life insurance does not offer cash value, but can often be converted to "permanent" insurance, which can provide lifetime protection and build cash values.

Term Life Insurance FeaturesHere are a few of the features and benefits associated with term life insurance:

Term insurance can be used on its own or to supplement a permanent life insurance policy and provide additional coverage

Term Life Insurance is available in 1, 5, 10, 15, 20, and 30-year terms

Think of term life insurance as "renting" your life insurance coverage, if you are interesting in "owning" life insurance, a permanent life insurance solution may be a better fit for you

Certain riders (or options) can be attached to term life insurance policies which enhance the basic coverage offered under the policy

Some policies offer you a return of premium option which allows you to receive a portion of your premium back if you surrender your policy

Your beneficiary will be paid the face value of the policy if death occurs before the term expires

Common Uses of Term Life InsuranceTerm life insurance policies can be used to help:

Ensure that your children can attend college or that family living expenses are paid

Cover new debt (such as a home equity line of credit, a home mortgage or a car loan)

Contact UsTo arrange a convenient appointment, simply call us toll-free at 1-800-724-9949 or visit your nearest M&T branch. You can also “Get Started” on your personal or business insurance coverage right now, online.

Investment and Insurance Products: • Are NOT Deposits • Are NOT FDIC-Insured • Are NOT Insured By Any Federal Government Agency • Have NO Bank Guarantee • May Go Down In Value

M&T Securities, Inc. is licensed as an insurance agent and acts as agent for insurers. Insurance policies are obligations of the insurers that issue the policies. Insurance products may not be available in all states.

The content of this page is for informational purposes only and is not intended to offer any tax, legal or financial advice. Please consult with the professionals of your choice to discuss your situation.